U.S. severe drought have implications for global food fund speculation as "an accomplice"
 
A heat wave is threatening the U.S. grain harvest.
 
Fear of drought-induced drop in grain production, the U.S. Department of Agriculture has worked continuously to reduce the grain harvest is expected, which can be expected, grain market prices along with soaring.
 
The past month, soybean, corn and wheat grain prices continue to record: the corn has risen more than 50% for wheat this year has risen by about 30 percent, soybeans approaching the peak time in 2008, soybean meal, a record high .
 
Financial speculation in boosting food prices
 
The United States as the world's largest production of corn, soybeans, wheat exporting countries, soybeans, and wheat accounted for 40 percent of the world, its production trends directly about the global food supply. Corn and soybean reserves are relatively low, even a slight decline in the harvest, will cause a chain reaction in the global food commodity markets. Currently, the U.S. high temperature and dry weather has produced a "butterfly effect", and spread to other parts of the world, international food prices skyrocketing trend is intensifying.
 
In fact, since the second half of 2011, the international food prices began to fall. According to the UN's FAO food price index released, after a continuous decline in the first half of this year, the international food price index has been below the same period in 2008 and 2011.
 
However, the recent weather in the U.S. international prices rebound.
 
The impact of drought on the one hand, on the other hand, the speculation of U.S. financial institutions also lead to higher prices.
 
It is reported that, following the petrodollars after the agricultural products are also increasingly showing the trend of dollarization.
 
Rural Development Institute, Chinese Academy of Social Sciences researcher Li Guoxiang said in the interview with the "Daily Economic News" reporter, along with financial capital has poured into the market of agricultural products, agricultural products financial trends are becoming evident, especially in the futures market, the volatility of prices of agricultural products by the information impact great round of rising food prices, the weather is incentives, speculation is dominant. "
 
Enforcement of international agricultural markets become the leader of the Chicago Board of Trade of bulk agricultural products market food prices soared, food prices will further conduction through the futures market to the world.
 
Or facing a third of food inflation
 
Prior to buyers around the world to judge the American Century severe drought, coupled with the food agency also never expect a sudden drought, so the majority of food crops buyers locked in advance the cost. Speculative funds continued speculation does not exclude the possibility of the international market of soaring food prices, the global economy will face a third of food inflation in the past five years.
 
Da Silva, Director-General of the Food and Agriculture Organization of the United Nations, worried that the recent food prices to rise will increase the burden on the poor, because these people up to 75% of the income used for food expenses, by rising food prices the biggest impact.
 
Earlier, the UN FAO and the Economic Cooperation and Development (OECD) jointly issued a July 11 report, the next 10 years, global agricultural production growth rate of 2% slowdown from the past 10 years to 1.7%.
 
Although the world price of food products from highs after 2008, but will remain high in the next 10 years.
 
On the other hand, the grain market panic has spread to the world. The world's second largest rice, sugar and wheat-producing countries, India is planning to adjust the export policy, if food prices are rising, India will reduce the main agricultural exports.
 
Russia's food export situation is not optimistic. According to the Russian Ministry of Agriculture announced that, subject to the continuing impact of adverse weather conditions, in 2012 Russia's total grain output from 85 million tons down to 80 million tons is expected.
 
Li Guoxiang, said: "since October, the U.S. food production to know if the drought is severe, forecasters also lowered grain output is expected, if the funds to further speculation, will lead to world food prices continue to fluctuate."



Other News:
Steel price decline slowed down much hot rolled coil rebound
U.S. drought triggered inflation fears
Mechanical seal installation to use the basic precautions
Also the continuation of a heavy rain all over the floor muddy Steel City disast
Expansion surge in domestic demand and move the steel market is expected to be b
Vale: This year, plans to produce 300 million tons of iron ore
Significant signs of stabilization of the price correction steel rebar of
Pump mechanical seal cooling and flushing